Hungary vs Luxembourg
Tax Rate Comparison
Enter your income below for a personal tax estimate, then scroll down for full rate breakdowns.
💰 Personal Income Tax Calculator
Enter your income to see your estimated annual tax liability in each country — side by side.
Individual Income Tax (Top Marginal Rate)
VAT / GST / Sales Tax
Corporate Tax Rate
Capital Gains Tax
Social Security & Payroll
🇭🇺 Hungary — Local Business Tax & Communal Levies
Hungary's 19 counties and 3,177 municipalities levy Helyi Iparűzési Adó (HIPA — local business tax) on companies at up to 2% of net revenues. This is a major cost for businesses operating in Hungary. Budapest applies the maximum 2%. Municipalities also set property tax (építményadó) within national caps. Hungary has a uniquely simple income tax structure with a flat 15% rate across all income levels.
🇱🇺 Luxembourg — Municipal Business & Property Taxes
Luxembourg's 102 communes levy the Gewerbesteuer (business tax) on companies at rates set by each commune (base rate 3% + municipal multiplier 175%–400% = effective 6–10.5%), and communal income tax additionals on individuals. Luxembourg City has higher rates than rural communes. The combined corporate tax (national + municipal) ranges from ~24.9% to ~26.01%. Luxembourg is a major holding company and fund domicile jurisdiction with extensive tax treaty networks.
Hungary vs Luxembourg: Key Tax Differences (2026)
💰 Income Tax: 🇱🇺 Luxembourg has a higher top income tax rate (15% vs 0–42%). 🇭🇺 Hungary is more favourable for high earners.
🛒 VAT/Sales Tax: Hungary has a higher consumption tax (5–27% vs 3–17%).
🏢 Corporate Tax: 🇭🇺 Hungary offers a lower corporate rate (9% vs 24.94%), which can influence business location decisions.
📈 Capital Gains: 🇭🇺 Hungary taxes investment gains at a lower rate (15% vs 42%), benefiting investors.